Jim Rogers Says Commodities Will be Profitable Investment for Years

In an interview with Bloomberg Television, Jim Rogers again reiterated his bullish outlook for commodities, saying Asia will continue to purchase commodities for decades.

Even if the Federal Reserve weren't to print more money (which it will), the underlying fundamentals of commodities would drive the price up. With the Fed sure to inflate, or implement another round of they're now calling quantitative easing, they're just going to make the process happen quicker in U.S. dollar terms.

As Rogers has said in the past, “If the world economy gets better, the prices of commodities will go up because there are shortages developing. We already see shortages developing. You mentioned rare earths, but there are others. If the world economy doesn’t get better, I still want to own commodities because they’re [Federal Reserve] going to print money.”

So whether it's demand or faulty economic policies, the commodity sector will continue to thrive for years to come.

Of course we need to watch for new price highs and be diligent in following the sector, but overall, commodities going to boom for some time.

As for gold, Rogers has said in the past he sees it going as high as $2,000 an ounce, although he has no idea when that may happen.

For now, he's reluctant to acquire more gold because it stands close to historical highs. He's looking to buy more on corrections.

Similar to investing on a monthly basis with stocks, another commodity bull, Marc Faber, recommends investors acquire gold in the same way, acquiring it consistently over a period of time to get a decent average price for it.

Two of Rogers' favorite commodity plays at this time are rice and silver, as they haven't yet reached new highs.

Federal Reserve Decides to Do Nothing, About Time

The highly anticipated meeting of the FOMC resulted in a decision that unfortunately not the historic practice of the Federal Reserve, and that was to do nothing and see if the economy will heal itself before initiating any other actions.

After "stimulating" the economy with about $1.7 trillion, and getting no results, it's not surprising to see them hold off here, as the highly unpopular and outrageous spending of the Obama administration will result in a huge political swing in November.

It probably goes without saying there was pressure on the "independent" Fed to do nothing, as it would have probably made things even worse for the Democrats.

Like the last meeting, the Fed did say they stood ready to interfere in the economy again if things continue on as they are.

It's incredible to see the Fed say they're going to wait to see if the weak economy will heal itself after skewing it with the $1.7 trillion.

There can be no doubt this was a political decision, and there was no way a new stimulus or quantitative easing was going to be put into play before the November elections.

The FOMC doesn't meet again till after the elections, which at that time we'll be sure to see the usual response from the Federal Reserve.

Other than ending the Fed, it's too bad they don't do all the time what they did today, but then they wouldn't be considered necessary, as in reality they aren't.